Abstract
In an era of heightened environmental awareness, sustainability has evolved from a strategic choice to a corporate imperative. Drawing upon established research in sustainable corporate efficiency, managerial ability, and machine learning-based production frontier estimation techniques, this study has a twofold aim. First, it introduces a new measure of efficiency in generating revenues sustainably, from an environmental perspective. Second, it quantifies the managerial ability that drives it. These measures are estimated from a comprehensive dataset covering over 2,800 listed firms from 61 countries over the period 2010-2022. By integrating financial and environmental factors, this study offers insights into firm-level efficiency within the evolving landscape of sustainable business practices and the trajectory towards net-zero.